PENANG is placing greater emphasis on helping local small and medium enterprises (SMEs) integrate into multinational corporation (MNC) supply chains to ensure the benefits of foreign investments are shared more widely across the local business community.
State Trade and National Unity Committee chairman Goh Choon Aik said attracting MNC investments remained important, but efforts must also focus on enabling local SMEs to participate in and benefit from the broader industrial ecosystem.
He said the SME-MNC Connect Day served as a key platform for local SMEs to engage directly with multinational companies and explore opportunities in business matching, procurement partnerships, technology collaboration and supply chain integration.
“We do not want multinational companies to come to Penang while local businesses remain outside the supply chain.
“Instead, we want more Penang SMEs to have the opportunity to enter the supply chain, enhance their capabilities and grow into internationally competitive companies,” he said in his speech at the event.
Goh said Penang’s well-established ecosystem in the electrical and electronics (E&E), machinery and engineering, manufacturing and professional services sectors provided a strong foundation for local SMEs to expand into regional and international markets.
He said the government’s role was to facilitate industry linkages, create business networking opportunities, support capability-building initiatives and foster a conducive business environment for SMEs.
“For SMEs to succeed internationally, it is not enough to rely solely on government assistance.
“They must continuously improve their quality, technology, productivity, certifications, delivery capabilities and professional standards to meet the requirements of global supply chains,” he said.
Goh added that Penang’s industrial development strategy should not be measured solely by the volume of investments secured, but also by the extent to which those investments created opportunities for local businesses, facilitated technology transfer and contributed to talent development.
“Investment attraction is only the first step. The long-term value lies in ensuring that supply chains are firmly rooted here and that local businesses can grow alongside multinational corporations,” he said.
He said the state government would continue to strengthen collaboration between MNCs and local SMEs, with the aim of helping more local businesses move beyond domestic markets and become part of regional and global supply chains.
“Our goal is for Penang to be not only a preferred investment destination for multinational corporations, but also a launchpad for local SMEs to expand internationally,” he added.
Goh expressed confidence that stronger collaboration among MNCs, SMEs, educational institutions and industry stakeholders would further strengthen Penang’s industrial ecosystem and ensure economic growth benefited a broader segment of the community.
Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the two-day programme was created to bridge the gap between MNCs and SMEs after industry feedback revealed a mismatch in expectations between the two groups.
He said many SMEs claimed they were ready to take on projects from MNCs but lacked opportunities, while some MNCs believed local companies were not yet prepared to meet their requirements.
“To address this, we invited MNCs to present what their companies are doing, the localisation opportunities available, the projects that can be outsourced to local companies and the criteria used to select vendors.
“This allows SMEs to understand what is required and assess whether they are ready or if they need further development,” he said.
Wong said the programme also provided a platform for direct engagement between MNCs and SMEs, helping both sides gain a better understanding of each other’s capabilities and needs.
“Some SMEs say they are ready but do not have opportunities, while some MNCs say the SMEs are not ready.
“We hope this programme can connect both sides and close that gap. At the same time, some MNCs are not fully aware of the capabilities of our local SMEs, many of which are actually very good,” he added.
The Penang event followed a similar programme held earlier in Kuala Lumpur.
Wong said around 15 to 17 MNCs were participating, while attendance exceeded 200 participants.
The participating companies came from across Malaysia and overseas, reflecting MSIA’s role as a national industry association rather than a Penang-based organisation.
Story by Edmund Lee
Pix by Alissala Thian